1) Using Credit Cards Before Filing:
The three months prior to filing a Will County bankruptcy is considered an abuse period and any charges to your credit card during that time can be questioned. It is important to tell your Joliet bankruptcy lawyer if you have made any purchases or cash advances during the 90 days before you file a bankruptcy case.
2) Leaving out Creditors On Your Bankruptcy:
The bankruptcy court requires that you list all of your creditors on the bankruptcy petition. If you fail to list a creditor that debt will not be discharged. We will always run a current credit report before we filed your case, but not all creditors are listed on your report. Take the time to make a list of all your creditors and bring those to your Joliet bankruptcy attorney.
3) Deciding to Reaffirm Debt That Will Cause You Financial Stress After Bankruptcy:
Often time our bankruptcy clients want to keep large debt such as a car loan. Sometimes that makes sense, but reaffirming is a very important decision and should be carefully analyzed. The last thing you want to do is file your Chapter 7 bankruptcy and after the bankruptcy is over still be saddled with debt you cannot pay back.
4) Filing A Bankruptcy When You Are Expecting A Large Tax Return:
In Illinois bankruptcy you can only protect a certain amount of your current assets or income that your are expecting. Filing a bankruptcy at the wrong time can cause you to potentially lose your tax refund. It is important to disclose to your Joliet bankruptcy attorney how much you expect so they can choose the right time for you to file your bankruptcy case.
5) Using Your Retirement to Pay Unsecured Creditors Before Filing a Bankruptcy:
Retirement savings are exempt in Illinois bankruptcy. If you are considering filing a Chapter 7 or Chapter 13 in Illinois you should consult with a local bankruptcy lawyer before you decide to deplete your hard earned retirement.
6) Putting Off Bankruptcy:
Waiting too long to file a Will County Bankruptcy can give your creditors and their attorneys a chance to freeze your bank accounts, garnish your wages, or foreclose on your home. At the very least if you are considering filing you should set up an appointment so you can educate yourself to the risks involved with waiting to file.
7) Paying Back Loans to Friends and Family Members Before Filing Bankruptcy :
Paying back loans to friends or family members before you file your Illinois Chapter 7 case is considered a preferential treatment in bankruptcy. Payments to friends or family members over regular creditors is not allowed in bankruptcy.
Call our Joliet law office to discuss bankruptcy. Simple knowledge about the process can avoid serious issues before and after filing.